Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
“the focus is now firmly on achieving the most valuable outcome from this sampling programme, which would position, subject to a longer-term arrangement, the Company in facilitating such an acquisition as Middleburg and enable the Company to become a miner and processor of our ore on site.”
From. Accounts - looks like they are following their strategy
No sure this is what the market is saying or the MMs - less than £10k if sells reported and the MMs have dropped it like a stone.
What is there not to like. IMO The company is in the best position it has ever been in
(1) they have the defined resource
(2) the resource and quality appears to be acceptable to end users
(3) one potential partner doesn’t want to see any more samples before considering offtake
(4) we have first option on a smelter and in discussions with investors
There are still risks but i think all these things are linked. my take is the potential investors are waiting for the commitment from the offtake partner which will give us cash flow and derisk. Then an investment in the smelter will begin.
The aims of the company are fairly clear and it looks like the ducks are all being lined up. Next RNS could be an absolute belter if these things come together and I don’t think it will be long. If it doesn’t come together then we have a lot of valuable resource but this on its own won’t realise the significant potential ironveld has
How much cash have we left? Could the new pics be used to get the price up and a placing away?
That was my point Nowucit Why would they RNS to say that test tests are expect in 3 weeks and then take another 12 months to I assume conduct further tests - doesn’t make sense to me.
I for one didn’t expect results to be RNSed - why would they? - the potential offtaker could say they are “satisfactory” but that in no way guarantees a long term offtake agreement. If they are satisfied then there are a heap of negotiations that would go on - agreeing price, quality, quantity, timing etc.
Believe the next RNS will be offtake deal and I don’t think this will be long in coming as
They Only have enough cash until end of Feb (as per accounts). Deal comes and this could easily multibag on day of announcement
Babbler2
The more recent RNS that led to the spike indicated to me that the sample they have is sufficient to smelt and if successful they would agreed to a long term offtake. My reading below thinks they are now no longer looking for the larger sample but it may just be my interpretation
The Company has now delivered sufficient tonnage to the potential off-taker for them to undertake a full kiln smelting test and expects to receive the outcome of the test in the next three weeks following which the Company anticipates that a long term off-take agreement with the off-take partner will be reached.
Not expecting them to RNS Friday as I don’t think they will simply communicate any results - if they are happy with the sampling then the next RNS I would expect would be confirmation of the offtake agreement. Shortly after that I would expect them to purchase the smelter and start producing their own end product. I expect this to be done in Feb as they only have enough cash in hand until the end of the month - sticking to timings has been ironvelds forte over he years
Good on you fortitude - been here for as long as I can remember. That long I still have much first batch at 7.8p
You and I know how this can rise - I remember the days when this went from 2p to 14p on the JORC - lucky for me I bailed with a significant chunk when it was in double figures. I believe this will come good and prepared to wait for that day. It doesn’t go without risk although the risk v reward play is massive.
Don’t disagree that it is likely that they need money but suspect and placing would be done if/one they have an agreement and at a substantial increase to the one they did late last year.
BOD I do believe have professionalism and respect - a few have not been paid for many many months and they have deferred receiving their “consultancy” income. They could have raised more than the £400k last time so they could be paid or they could have taken it in shares whilst the price was sub 2p. They did neither.
Anyone any idea how long it is anticipated that the drill with take to get to TD
I actually think some of these late reported trades are sells that have been worked on through the day or over a few days - the most recent ones seem to be around the 2pm mark.
Could it be that there is a placing on the way at 2p and these have been forward sold? I hope not !
I read it differently. I don’t think they have delivered the full sample but the potential off take partner has received sufficient to conduct and complete testing.
They may decided to take a longer sample of our entire resource over 12 months but the most recent RNS implies that they may be prepared to sign an offtake agreement now based on the sample they have tested rather than wait for 12 months
So little point spending £400k on machinery half way through shipment if you weren’t convinced that a deal was going to be forthcoming. I would also guess the machine they were purchasing would be fairly specialist and you couldn’t get one delivered by amazon prime the next day ! Doubt if they have the machine yet IMO
In the accounts it says they have enough money until February which ties in nicely to the “anticipated” offtake agreement. They also have the 500k refundable deposit still with Middleburg (as per accounts)
My take is that the will get the offtake agreement. Cash flow will come in, they will then get finance for the smelter and start producing their own off take product as well. Worst case, sell the resource to someone close by or partner with them !
Think the placing was at 1.65p in November but the large amount they raised prior to that was at 2p. Maybe some of the pull back today was those who participated in the November placing selling out for a quick 50% profit !
Agree they will need money but I would expect an announcement on long term offtake partner and finding at a premium of today’s share price. Companies will always want to place at highest possible price and on back of offtake agreement may well be able to do it - if of course the offtake agreement comes in